TaxTMI 
TaxTMI 
2006 (4) TMI 92
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....o questions of law are referred for our opinion by the Income-tax Appellate Tribunal under section 256(1) of the Income-tax Act, 1961 (for short herein after referred to as "the Act") : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that Rs. 30,000 paid for issue of shares is allowable as a business expenditure? 2. Whether, on the facts and in t....
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....modify the assessment and recompute the income for the above assessment year after verifying the claims wherever necessary and as per directions given by him. Aggrieved by the said order the assessee preferred an appeal to the Tribunal. The Tribunal allowed the appeal of the assessee in part and restored the order of the assessing authority in so far as the aforesaid two deductions are concerned. ....
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....of the Supreme Court, the order of the Tribunal holding it otherwise is unsustainable in law and, therefore, the first question referred for our opinion is answered in the negative and against the assessee and in favour of the Revenue. The answer to the second question depends upon the interpretation to be placed on section 43B of the Act. The said section reads as under: "43B. Certain deduction....
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.... to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of the employees could be deducted only on actual payment. The deduction is allowed only in computing the income referred to in section 28 of the previous year in which such sum is actually paid by the assessee. In other words, actual payment is a condition precedent for claiming deduction. Therefore, ....